Indonesia Faces Youth Job Crisis Amidst Stalled Economic Change
Jakarta, Indonesia – October 8, 2025 – Indonesia is grappling wiht a persistent challenge in generating sufficient employment opportunities for its burgeoning youth population, a situation exacerbated by a decades-long stagnation in structural economic transformation. Recent analysis indicates the nation has lagged behind regional peers in shifting towards higher-productivity sectors, hindering its ability to absorb a growing workforce and capitalize on its demographic dividend.
The issue poses a significant threat to Indonesia’s economic future, potentially fueling social unrest and limiting the country’s potential for sustained growth. With a median age of under 30, Indonesia boasts a large youth demographic, but without significant job creation, especially in higher-value industries, a substantial portion of this population risks underemployment or prolonged unemployment. This lack of economic mobility could stifle innovation and hinder Indonesia’s progress towards becoming a high-income nation.
A recent report highlighted that Indonesia’s manufacturing employment share has remained largely static over the past three decades, unlike many other developing economies that have experienced significant growth in this sector. This absence of productivity-enhancing structural transformation is a key factor contributing to the limited availability of quality jobs for young Indonesians. The situation demands urgent policy interventions focused on fostering industrial diversification, improving skills advancement, and creating a more conducive habitat for investment and entrepreneurship.
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